Group 1: 5G Smart Factory Impact - The 5G smart factory has been officially launched after over two years of construction and testing, playing a significant role in the company's smart manufacturing and green transformation [2][3] - Short-term profit enhancement from the 5G smart factory is unlikely due to ongoing adjustments, but it is expected to provide strong momentum for future performance growth [2][3] - The factory achieves a production cycle of 18 seconds per unit and an automation rate of 95%, with energy consumption 20% better than national standards, significantly improving production efficiency and data application [3] Group 2: Trusted Data Space Development - The company is responding to the national "Trusted Data Space Development Action Plan 2024-2028" by building a trusted data space to facilitate data resource sharing and value co-creation [3] - The trusted data space aims to connect various stakeholders in the water industry, enhancing collaboration and promoting high-quality development towards smart and sustainable practices [3] Group 3: Cloud Intelligence Platform - The Cloud Intelligence platform, designed for small and medium-sized water companies, has served over 300 water companies, covering more than 50 million households [4] Group 4: Business Improvement of Tianhe Permanent Magnet - The company has taken over Tianhe Permanent Magnet's operations in 2025, focusing on R&D investment and channel development, achieving a first-pass recovery rate of over 96% for low-content waste materials [5] - The operational status of Tianhe Permanent Magnet is gradually improving through cost control and capacity enhancement [5] Group 5: Market Positioning and Valuation Management - The company emphasizes market management and shareholder returns, focusing on core business, increasing R&D investment, optimizing product structure, and expanding both domestic and international markets to enhance operational performance [5]

Group 1: Certifications and Market Expansion - The company’s ultrasonic water meter has recently passed OIML and MID certifications, allowing it to be sold freely in 31 EU member countries, thus eliminating technical trade barriers [2][3] - OIML certification enhances customer trust and promotes international trade by ensuring compliance with international standards [3] Group 2: Financial Performance and Challenges - The company experienced a significant decline in performance in 2024 due to substantial losses from its subsidiary Tianhe Permanent Magnet, attributed to market conditions, price fluctuations, and production issues [3][4] - Tianhe Permanent Magnet's losses were exacerbated by a continuous drop in rare earth oxide prices and management misjudgments, leading to cash flow difficulties [4] Group 3: Future Strategies and Measures - In 2025, the company plans to implement a management system focused on "headquarters control and segment autonomy," emphasizing reform and stability while pursuing digital transformation through a 5G smart factory [4] - The company aims to enhance its market position by focusing on large projects, new demand, and improving internal capabilities, including technology innovation and cost control [4] Group 4: Financial Compensation and Impact - Tianhe Permanent Magnet is expected to pay a total compensation of CNY 214,395,700.00 for 2024, with CNY 179,729,043.80 due for that year [4] - The company anticipates recognizing CNY 107,607,526.70 as a financial asset from the compensation, with CNY 72,940,870.50 recognized in 2024 [4] Group 5: Revenue and Market Conditions - In Q1 2025, the company achieved a revenue of CNY 213,343,591.30 [5] - The company’s products are primarily exported to regions such as Australia, Africa, the Middle East, and Southeast Asia, with no current exports to the U.S., thus unaffected by U.S. tariffs on Chinese goods [5]